EXERCISE 7-12. Journal Entries and Problem Solving 2: Death or incapacity of a partner. Tito, Vic, and Dolphy were partners sharing profits and losses in the ratio of 50:25:25, respectively. Their partnership agreement stipulated that in the event of dissolution, assets should be revalued with any gain or loss allocated to the partners. One night, Dolphy passed away in his sleep. The capital account balances before recording revaluation were P160,000, P90,000, and P105,000, respectively. The effect of the asset revaluation was to increase merchandise inventory account balance by P12,000 and decrease the building account balance by P18,000. REQUIRED: 1. Prepare journal entries related to the following: 2. Revaluation 3. Settlement of Dolphy's ownership interest by the partnership to his legal wife at an amount equal to P5,000 more than his capital account balance after the revaluation. 4. Determine the capital account balances of the continuing partners after the settlement of Dolphy's ownership interest. 5. Determine the new profit and loss ratio of Tito and Vic, respectively, after the settlement of Dolphy's ownership interest in the absence of specific agreement.

EXERCISE 7-12. Journal Entries and Problem Solving 2: Death or incapacity of a partner. Tito, Vic, and Dolphy were partners sharing profits and losses in the ratio of 50:25:25, respectively. Their partnership agreement stipulated that in the event of dissolution, assets should be revalued with any gain or loss allocated to the partners. One night, Dolphy passed away in his sleep. The capital account balances before recording revaluation were P160,000, P90,000, and P105,000, respectively. The effect of the asset revaluation was to increase merchandise inventory account balance by P12,000 and decrease the building account balance by P18,000. REQUIRED: 1. Prepare journal entries related to the following: 2. Revaluation 3. Settlement of Dolphy's ownership interest by the partnership to his legal wife at an amount equal to P5,000 more than his capital account balance after the revaluation. 4. Determine the capital account balances of the continuing partners after the settlement of Dolphy's ownership interest. 5. Determine the new profit and loss ratio of Tito and Vic, respectively, after the settlement of Dolphy's ownership interest in the absence of specific agreement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I need help on finding this answer I have tried every scenario I can think of and everytime the answer is wrong
A-7
Haresh G
A1
Subject: accounting
Using the attached information, the simple journal entries to record the partners’ contributions include
a. The total restricted interest in the month of April amounted to:b. The cash received by Lawrence in the 1st month amounted to:
Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $111,000, $62,000, and $32,000, respectively. Assume instead that Foss leaves the partnership. Foss is paid $129,000 with a bonus to the retiring partner. Prepare the journal entry to record Foss’s withdrawal. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Dd.112.